President Bola Ahmed Tinubu has approved the payment plan to finally settle the outstanding debts under the Presidential Power Sector Financial Reforms Programme.
The debt repayment plan followed the final review of the legacy debts besetting the power sector for more than a decade.
The long-standing debts accumulated between February 2015 and March 2025.
Following verification, ₦3.3 trillion has been agreed as a full and final settlement, ensuring a fair and transparent resolution.
Implementation has begun, with 15 power plants signing settlement agreements totalling ₦2.3 trillion. The federal government has already raised ₦501 billion to fund these payments.
A statement Sunday by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, said out of the amount, N223 billion had been disbursed, with further payments underway.
Providing further insights in the statement, Special Adviser on Energy to the President, Olu Arowolo-Verheijen, said: “What this means for Nigerians: With payments reaching the power value chain, generation will be more stable. With power plants supported, electricity reliability will improve. And as the sector stabilises, more investment, more jobs, and better service will follow,” Onanuga explained.
“This programme is not just about settling legacy debts. It is about restoring confidence across the power sector — ensuring gas suppliers are paid, power plants can keep running, and the system begins to work more reliably.”
“It is part of a broader set of reforms already underway — including better metering and service-based tariffs that link what you pay to the quality of electricity you receive.
“The government is also prioritising power supply to businesses, industries, and small enterprises — because reliable electricity is critical to creating jobs, supporting livelihoods, and growing the economy.
“The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians”, she added.
President Tinubu has commended all stakeholders who supported efforts to resolve the legacy issues in the power sector.
He also confirmed that the next phase (Series II) will begin this quarter.
…Adelabu’s apologies
In the midst of growing frustration of Nigerians with the nation’s power sector, Minister of Power, Adebayo Adelabu, had apologised with an assurance that the federal government was working to fix the challenge.
“Concrete measures are being implemented to ensure more reliable and sustainable electricity for homes, businesses, and industries. The reforms initiated by President Tinubu are beginning to take root, and Nigerians will soon witness the full benefits,” the minister had assured.
According to him, sustained public trust and cooperation were critical to the success of the administration’s reform agenda, pointing out that President Tinubu was actively repositioning Nigeria on the global stage to attract investment and foster development.
“These milestones underscore a new direction for our nation. I urge all Nigerians to continue supporting these efforts so that the gains can be consolidated for the benefit of all,” the minister had further added.
